Booze cruise

The UK competition body is probing the Dutch brewer’s 305 mln stg offer for part of Punch Taverns. Heineken would have serious pricing power, offset only partially by management of the target’s pubs by third parties. But Greene King’s similar purchase of Spirit got the thumbs up.

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A pint of beer is served through rows of beer pumps at the Campaign For Real Ale Great British Beer Festival at Earls Court in London August 2, 2011. REUTERS/Luke MacGregor/File Photo GLOBAL BUSINESS WEEK AHEAD PACKAGE Ð SEARCH ÒBUSINESS WEEK AHEAD SEPTEMBER 19Ó FOR ALL IMAGES - RTSOC99

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Context News

Britain's Competition and Markets Authority (CMA) on Feb. 16 opened an investigation into Dutch brewer Heineken's 305 million pound bid for part of Punch Taverns.

The CMA said the first phase of the probe would last two months, at which point it could decide to launch a wider investigation.

"This morning's announcement confirms an important and fully expected stage in the process to finalise our acquisition of the Securitisation A pubs from Punch and Heineken will be fully cooperating with the CMA," a Heineken spokesperson said.

A Punch spokesperson said: "It was always anticipated that the review of the transaction would be referred back from the [European Commission] to the UK and that the CMA would want to consider it. Today's announcement was expected and the Board of Punch continues to expect the transaction to complete as anticipated."